Litecoin hopes to incorporate cypto services into WEG Bank
Litecoin founder Charlie Lee has outlined the reasoning behind the stake acquired in Germany’s WEG Bank last week, saying the company hopes eventually to be able to offer crypto solutions through the institution.
The Litecoin Foundation – the non-profit organisation behind the cryptocurrency and blockchain network – last week acquired a stake in WEG Bank through a strategic partnership with Switzerland-based payments firm TokenPay Swiss.
Stake in exchange for services
Lee said that it did not pay any money for the stake – it will receive 9.9% in WEG from TokenPay in exchange for technical work and marketing support to integrate the Swiss company’s payments system in the bank.
He also outlined what benefits litecoin could expect to gain from the stake, with the best case scenario being to deliver crypto solutions such as “debit cards, merchant processing and other innovative solutions”.
Lee added: “People have brought up valid concerns that we still need to work with and be approved by players in the current financial systems like Visa and SWIFT, but we definitely have a much higher chance of succeeding now that we own a stake in a bank with bank licences.”
With a seat on the board of the bank, Lee hopes to have some influence over how litecoin and its applications can be adopted by WEG.
“Worst case is of course that the partnership fails for whatever reasons. This would of course hurt Litecoin Foundation’s reputation, but it would have no material impact on the company and it would have no effect on the Litecoin network and currency.”